3 Compute the cross price elasticity of soda with respect to the price of a bag of chips Are chips and salsa substitutes or complements? How you know? Are chips and pretzels substitutes or complements? How you know? Are chips and soda substitutes or complements? How you know? The table below describes the supply curve for light bulbs: Price per light bulb Quantity supplied per day $1.00 500 1.50 3,000 2.00 4,000 2.50 4,500 3.00 4,500 Compute the price elasticity of supply and determine whether supply is price elastic, price inelastic, perfectly elastic, perfectly inelastic, or unit elastic: when the price of a light bulb increases from $1.00 to $1.50 when the price of a light bulb increases from $1.50 to $2.00 when the price of a light bulb increases from $2.00 to $2.50 when the price of a light bulb increases from $2.50 to $3.00 Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 288